Question

Macroeconomic indicator: House prices after COVID-19 in Lower Mainland in Canada

Answer 1

Lower mainland Area in Canada is a term used for the geographical region, of Vancouver , British Columbia in the country of Canada. In this area of Canada, sale of houses has decreased significantly  in the recent months of 2020 when it is compared with the same month of the year 2019 as an impact of COVID-19 pandemic. But, this COVID-19 pandemic impact has not significantly affected the price level of houses and house prices are steady in nature. It is vindicated by the house price index that is $1.03 million for the lower mainland area and it is more than 2.5% up, of the index value of May 2019.

It means that house price working as a macro indicator, considers the impact of COVID-19 pandemic to be temporary that considers that decrease in demand is due to the sudden and temporary negative effect of corona virus and once it becomes the part of normal life and vaccines are found, the demand will increase again. So, it is a temporary dip in the Housing market and price have not decreased. Rather, it has become steady and not increasing sharply.